Government aid, vaccination to drive U.S. economic growth in Q2
The United States’ economy possibly grew at its second fastest in 38 years in the second quarter. The government’s massive aid and COVID-19 inoculations drove spending on travel-related services.
Economists surveyed by Reuters saw an 8.5% economic growth in the second quarter, higher than the first quarter’s 6.4%.
Subsidies from the government under President Joe Biden helped fuel the economic growth. These include $1.9 trillion in pandemic relief in March, one-time $1,400 checks to qualified households, and a $300 unemployment subsidy until early September.
The vaccination rate was also a huge factor, with half of America’s population already inoculated against the COVID-19. The vaccine allowed Americans to do activities outside resulting in a boost in consumer spending.
The U.S. economy was expected to grow around 7% this year.